RMI 3502 Lecture Notes - Lecture 1: Insurance Information Institute, Financial Analyst, Vehicle Insurance

• School: Temple University
• Department: Risk Management and Insurance
• Course: RMI 3502
• Professor: Michael Mccloskey

Document Summary

In some instances, governments require businesses to purchase insurance. Known as financial responsibility requirements, government-mandated purchases of insurance is intended to ensure that injured parties will be compensated. Insurance intermediaries serve as the critical link between insurance companies seeking to place insurance policies and consumers seeking to procure insurance coverage. Agents can operate in many different forms independent, exclusive, insurer-employed and self-employed. For example, the broker acts on behalf of the client when negotiating the contract of insurance and placing the policy. When the broker provides services that would otherwise be handled directly by the insurance company, such as premium payments and claims handling, the broker is essentially acting as agent for the company. There are several factors that intermediaries bring to the insurance marketplace that help to increase the availability of insurance generally. Self-insurance programs, well-managed loss control program to minimize the exposure a business faces and to protect third parties that are injured.